The euro held above the 1.165 mark through the end of August, holding most of its rally this year as markets assessed the outlook of global rates and how the ECB may respond to lingering concerns of slower growth. The latest price data indicated that EU-harmonized inflation was slightly below expectations in France and Italy, while the consensus was met in Spain. Rate futures continued to show a larger portion of the market pricing no more rate cuts by the European Central Bank this year, although lingering concerns of soft growth and headwinds stemming from tariffs by the United States maintained some positions pricing a rate cut in the forth quarter. The euro rallied 11% against the dollar this year as EU nations signaled they will increase expenditure to stimulate industry, infrastructure, and defense, while uncertain economic policy and fiscal stress in the US triggered a flight away from the dollar.